Under Massachusetts law, when you trade in your vehicle towards the purchase of another vehicle, the trade in allowance is deducted from the final purchase price before the sales tax is calculated at the Registry of Motor Vehicles. However, only vendors registered with the Massachusetts Department of Revenue are allowed the trade-in allowance.
What does this mean? Well, let’s say you purchase a vehicle for $30,000 and the dealer gives you $10,000 in trade-in allowance. If the dealer is registered with DOR you would pay $1,250 in Massachusetts sale tax when you register the vehicle after returning to the state. If the dealer isn’t registered than you would owe $1,875 as the sales tax would be calculated on the full price.
Fortunately, registration is only a click away on www.mass.gov/dor so the dealer can easily sign up and there are no fees to register. So before you buy, ask the dealership if they are registered with DOR and don’t get caught paying more sales tax than is necessary.
Mission Accomplished posted on Sep 15
They are two dogs with a very unique trick. Meet Fillmore and Max, a canine pair trained specifically to sniff out tobacco. The Massachusetts Department of Revenue recently teamed up with Altria representatives and their tobacco sniffing dogs for a two-day tobacco drive in an …Continue Reading Mission Accomplished
It’s All About Plain Talk posted on Aug 13
Commissioner Amy Pitter wants to be sure that the information going out of DOR to taxpayers is clear and concise. If you received a bill, form or notice from the Department of Revenue and are having trouble understanding what actions you need to take, tell …Continue Reading It’s All About Plain Talk
Take a survey — Your feedback impacts how DOR does business posted on Aug 4
The Department of Revenue wants to hear from taxpayers and anyone who is advocating for taxpayers! DOR has just unveiled its new “How Are We Doing?” survey page, and we’d like you to report in on your customer service experience. This page was created to …Continue Reading Take a survey — Your feedback impacts how DOR does business